All you need to know about Refinance
One of the main advantages of refinancing regardless of equity is reducing an interest rate. For homeowners who want to stay in their homes for a long period of time and are looking for ways to leverage equity in homes, refinancing offers several benefits. The most important question to consider before refinancing is, will refinancing save you money?
Frequently Asked Questions
When determining whether to refinance or not, the best thing to do is to consider your circumstances and evaluate any reasons as to why a refinance is in order. Some of the most common reasons for refinancing are when:
- You need to convert an adjustable loan to a fixed rate loan.
- You need to pull out cash from your home equity for debt consolidation purposes.
- You are in need of cash for home restructuring and capital improvements.
- Your main objective is to reduce your interest rate and loan installments payable.
It really depends upon the circumstances of your case. If your current interest rate is higher than the prevailing market rate, refinance is a better option and makes sense. The amount saved will depend upon the difference between the previous and the revised interest rates. For all practical purposes, it is best to talk to our team or use our calculators to determine the cost- saving incentives, if any, for refinance.
For a standard refinance transaction, certain information regarding your income is necessary. This includes W-2s for the preceding two years and paystubs for the most recent 30 days, bank and/or mutual fund statements up to the last 60 days, asset information, and loan information. Other documents, such as homeowner’s insurance declarations and mortgage statements may also be required. Contact Traditional Mortgage, LLC to learn more about the documents needed.
Most refinance transactions take approximately 30 to 45 days to complete, from the date of submittal of all necessary documents and records.